Create an advisory report for a business of your choice in the mining industry. Imagine your business is considering investing in South Africa. Conduct a PEST analysis using this template. Link each factor mentioned to your business and consider how your business could respond. Advise them as to whether investing in South Africa is a good opportunity, or an unacceptable risk. Please research this topic and complete each section. Use appropriate academic sources and provide evidence of their use.
Contribution to the final module mark: 100% of final module mark
Submission: via TurnItIn
Word limit: 1500 words + / – 10%
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Date:
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Section one
Introduction: The Firm and the Industry
1.1 General information about your chosen firm (consider – its products & services, its location, the kind of business strategy it pursues?):
1.2 Describe the industry in which the firm operates (consider – primary, secondary, tertiary production i.e. manufacturing, processing, retail? Competition?):
1.3 Describe the industry in the country (consider – market structure & competition, key competitors?):
Section two
South Africa: Political factors
2.1 Describe the political system (consider – democratic? Authoritarian? What kind of party forms the current government? Is it a coalition? Attitude to business?):
2.2 Political risk (Consider – stability? Corruption?):
2.3 Government policy in relation to your sector (consider – are there legal requirements relating to quality? Environmental regulations? Price controls?):
2.4 Taxes (consider – direct, indirect, incidence of tax):
Section Three
South Africa: Economic factors
3.1 General status of South Africa (Consider – level of development – GDP, HDI?):
3.2 Current economic conditions in South Africa (Consider – growth? Recession?):
3.3 Government economic policy (Consider – monetary and/or fiscal policy in relation to the business cycle & inflation?):
Section Four
South Africa: Social factors
4.1 What are the most important current demographic trends? (Consider – birth/death rates? Wealth distribution?)
4.2 Where is demand strongest? (Consider – geographically, in terms of class or income, public or private sector?)
4.3 How do culture and lifestyle factors affect this industry? (Consider – social values, working practices, levels of income, ideology and aspiration?)
Section Five
South Africa: Technological factors
4.1 What kind of technology is relevant to your business in this industry? (Consider – products & processes)
4.2 What level of development is South Africa at in relation to these technologies? (Consider – any specific difficulties or advantages you may face in South Africa? ICT infrastructure? Distribution?)
Section Six
Conclusion: Advice to your firm
Section Seven
Reference list – please provide links.
END OF THE ASSIGNMENT
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